In case of shutdown, some military banks offering relief

Sep. 27, 2013 - 02:04PM
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Showdown Over a Shutdown

If the White House and lawmakers on Capitol Hill fail to agree on a temporary spending deal by Monday, the US government will shut down for the first time since 1996. Click here for complete coverage. -----

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Some military-affiliated banks and credit unions have announced their plans to help service members manage their finances if there is a government shutdown and Oct. 15 paychecks are affected.

October 1 paychecks will not be affected, regardless of whether there is a shutdown.

■ Navy Federal Credit Union will cover the direct deposits of the Oct. 15 paychecks of active-duty members so that “our active-duty members will not see a difference in their direct deposit amount — as if there were no shutdown,” said Cutler Dawson, Navy Federal president and chief executive officer, in an announcement about the policy. Any active-duty member enrolled in direct deposit before Oct. 9 can ensure coverage of their Oct. 15 pay, including those who join the credit union before that time. Navy Federal will recoup the funds once the military is paid, said Jeanette Mack, a spokeswoman for the credit union.

■ USAA will offer zero-interest payroll advance loans to military members with existing direct deposit at the bank, special arrangements such as payment deferrals, refunds of certain fees for credit cards and other products, waiver of penalties on early withdrawal of funds from certificates of deposit, and billing arrangements for insurance products.

■ Randolph-Brooks Federal Credit Union will extend provisional credit to government employees or benefit recipients who have established direct deposit with the credit union. There will be no interest or fees charged for the credit. The credit union will notify members who may be affected about their options.

Traditionally, when there has been a threat of a government shutdown or other issues, such as the government furloughs this summer, a number of credit unions and banks have offered different forms of relief, such as no-interest or low-interest loans and deferrals of payments.

Troops and families should check with their own financial institution for options if there is a shutdown that affects pay.